Woodside Energy has taken a final investment decision (FID) on the foundational phase of its Louisiana LNG development in the US, which involves an investment of $17.5bn.
The initial stage of the project involves the construction of three liquefied natural gas (LNG) trains with a combined annual production capacity of 16.5 million tonnes.
Woodside aims to achieve first LNG production in 2029, enhancing its capability to deliver approximately 24 million tonnes per annum (Mtpa) from its global portfolio in the 2030s. This initiative is expected to enable Woodside to operate over 5% of the global LNG supply.
Woodside CEO Meg O’Neill said: “Louisiana LNG is a game-changer for Woodside, set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns.
“This world-class project is a compelling and de-risked investment. It leverages Woodside’s proven strengths in project execution, operational excellence, marketing and customer relationships to offer significant cash generation and drive long-term shareholder value.”
Located in Calcasieu Parish, Louisiana, the project has secured full permitting for a total capacity of 27.6Mtpa, allowing for future expansion with two additional LNG trains.
The projected financial outcomes for Woodside’s project include an internal rate of return exceeding 13% and a payback period of seven years.
The Louisiana LNG project is expected to generate approximately $2bn in annual net operating cash flow in the 2030s. This is likely to contribute significantly to the company’s broader goal of achieving over $8bn in annual net operating cash from its global operations in the same period.
Stonepeak, which is acquiring a 40% stake in the LNG project, will provide $5.7bn towards the expected capital expenditure, covering 75% of the costs in 2025 and 2026. Woodside’s share of the total capital expenditure stands at $11.8bn.
Bechtel was appointed as the engineering, procurement, and construction contractor for the project.
Last October, Woodside completed the acquisition of Tellurian and its LNG development opportunity along the US Gulf Coast, which was subsequently renamed Woodside Louisiana LNG.
